MADISON, Wis. (4/27/11)--The 100 top-performing U.S. credit unions are more likely than other credit unions to use advanced forms of address verification, which provide benefits such as increased member satisfaction and reduced costs, according to a recent report from Experian. The research evaluated 50 of the top 100 credit unions, as ranked by performance in the 2011 edition of the Callahan
Report. The 50 credit unions participated in a short survey about address verification practices and data quality initiatives. In the report, address verification is defined as the practice of capturing, validating, cleansing and standardizing address information. Address validation practices were divided into four categories--no verification, ZIP Code level verification, premise level verification, or secondary level verification. Experian’s “2011 Address Verification Benchmark Report: The Top 100 Credit Unions” has several recommendations for credit unions:
* Quantify the amount of time, money and member “good will” currently spent on returned mail and service. * Execute a multipronged approach to cleansing data that includes:
* Staff training on the importance of overall data quality; * Use of back-end cleansing tools to continuously clean existing information over time, and to improve the quality of purchased third-party data; and * Point-of-capture address verification wherever data is entered, such as branches, call centers and websites, to standardize and ensure accuracy.
Key business findings of the report include:
* The most common level of address verification was no verification (32%). * Thirty percent of credit unions leveraged premise level address verification. Thirty percent used secondary level verification, the most advanced type. * Only 6% of respondents verify addresses at the ZIP Code level. ZIP Code verification is better than none. However, it generally results in low levels of deliverability, with house/building number and apartment/suite number often missing or inaccurate.
To view the report, use the link.